Banking

Exception fees may be charged when credit card payments are late, payments are dishonoured, or credit card limits are exceeded.

Some banks (and other credit providers) can allow an account to exceed the designated credit limit, up to a certain amount. However, they may also impose an ‘overdrawn account’ fee.

Can exception fees be waived?

Yes. Some banks offer select accounts for eligible customers where exception fees and other types of fees are waived or capped. The Australian Banking Association (ABA) provides a list of basic bank accounts from member banks which have low exception fees.

View the list and learn more on the ABA website.

ATM fees can be charged by the ATM owner for using their facility, and/or by the cardholder’s own financial institution for using another owner’s ATM. Fees differ across ATMs (depending on the ATM owner or type of transaction) and are charged direct to the cardholder’s account at the time of the transaction.

The ATM will display the amount of the direct charge. At this point, cardholders can either:

• agree to the charge and continue the transaction, immediately incurring the fee, or
• cancel the transaction without incurring the fee.

Some institutions choose not charge fees and others have network agreements allowing their customers to use other branded ATMs. Contact your bank or financial institution for more information.

A direct debit is when a payment is scheduled to be taken from your bank account or charged to your credit card. You must authorise these to take place.

It’s a convenient way to make recurring payments for things like phone and utility bills, insurance premiums, rent and mortgage. However, if you don’t have enough funds to meet the scheduled payment, you may be charged a dishonour fee.

Read the agreement carefully before entering into a direct debit arrangement. It is also wise to monitor the payments being deducted from your account, or charged to your credit card, and be prompt to cancel the authority when you no longer need the service.

Phishing is when an unauthorised third party tries to steal your sensitive information including usernames, passwords and credit card details through deception.

Often the third party disguises itself as a trustworthy entity in an electronic communication (for example email or instant messaging) and directs users to ‘update’, ‘validate’ or ‘confirm’ their details by entering their personal information at a fake website that looks and feels identical to the legitimate site. It is a type of scam and you should not reply to the email or click on any links.

Refer to our Scams page for more on phishing, other scams and how to protect yourself.

An unauthorised transaction is when funds are transferred from your account (or charged to your credit card) without your knowledge or consent. You should check your account statements regularly and contact your bank immediately if you believe an unauthorised transaction has taken place.

In most cases, if your bank follows the ePayments Code (a voluntary code of practice administered and monitored by the Australian Securities and Investments Commission (ASIC)), you will be entitled to a refund.

Most banks and credit providers follow the ePayments Code. See if your financial institution does, learn more about the Code and unauthorised transactions on the ASIC website.

In most cases you can cancel a direct debit authority at any time. If a contract with a business says that payment must be made by direct debit, you should speak with a solicitor before revoking your authority.

For direct debits that are linked to your savings or cheque account, you should notify your financial institution in writing. In the letter, you should note the date you would like these debits to stop and ask for a letter of confirmation once the task has been completed.

To cancel a direct debit on your credit card, you must write a letter to the business/service provider and send a copy of that letter to your financial institution.

ASIC’s Money Smart website has sample letters and more information to help you.

Note: If you cancel a direct debit payment, you must still pay the business for services or goods already provided to you. If you stop making payments, you may incur default penalties under the terms and conditions of your contract.

Here are some tips to help you use internet banking safely:

• consider installing anti-virus software and a firewall on your computer system to protect you from viruses and malware
• never store your login and password together on your computer or in your email account
• if you accidentally enter the wrong password or login, a message saying ‘invalid login’ will appear. If this happens three times, you will be locked out and unable to access your account. To regain access, call the bank
• some banks charge fees for online banking. To find out what they are, type ‘online banking fees’ into the search function at the bank’s website
• be careful transferring funds to another person’s account. If you enter the wrong information and submit, you may not be able to retrieve the funds
• make note of the lodgement and receipt number of transactions you complete online
• always remember to log off when you finish your online banking
• be wary of emails asking you for confidential information such as your internet banking login and password
• visit the Money Smart website for more information and tips.

Most banking fees and charges can be easily avoided if you manage your finances carefully. To avoid exception fees:

• check your account balances before making payments
• review your banking habits to minimise opportunities where exception fees might be charged
• choose the right account that suits your transaction and saving needs. For example, if you regularly exceed your account balance, choose one that has an overdraft facility
• consolidate your accounts to help you keep track of your funds more easily
• create a budget and plan your outgoing spending so that your financial commitments match your incoming funds
• keep a small balance in your account to cover unexpected withdrawals
• visit the Money Smart website for more information.

Most financial institutions have their telephone banking service linked to a 1300 number. This means you only pay the cost of a local call when you call from a landline anywhere in Australia.

Calls made to 1300 or 1800 numbers from mobile phones can often attract significant charges.